Nabors Industries Ltd (NBR)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.42 | 8.19 | 7.24 | 6.39 | 5.73 | |
| DSO | days | 49.21 | 44.55 | 50.41 | 57.12 | 63.71 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.42
= 49.21
To analyze the Days Sales Outstanding (DSO) of Nabors Industries Ltd based on the provided data, we observe a decreasing trend in DSO over the years.
As of December 31, 2020, the DSO was 63.71 days, indicating that on average, it took the company approximately 63.71 days to collect its accounts receivable. By December 31, 2021, the DSO decreased to 57.12 days, showing an improvement in the efficiency of the company's collections process.
Continuing this trend, the DSO further decreased to 50.41 days by December 31, 2022, suggesting a more efficient management of accounts receivable. By December 31, 2023, the DSO decreased to 44.55 days, indicating that the company was able to collect its outstanding receivables more quickly.
However, there was a slight increase in DSO by December 31, 2024, with the DSO standing at 49.21 days. This increase might indicate a slight slowdown in the collection of accounts receivable compared to the previous year.
Overall, the decreasing trend in DSO from 2020 to 2023 reflects an improvement in the company's accounts receivable management efficiency. The small increase in DSO in 2024 may warrant further investigation to ensure that the trend remains favorable in the future.
Peer comparison
Dec 31, 2024